Set the sceneNext-generation bolthole making a destination of this sleepy NSW surf town. At this motel-turned-boutique-hotel just north of Byron Bay, the mood-board is mid-century, Slim Aarons glamour. Bronzed pool boys in white uniforms serve artisan-gin cocktails to guests in big sunhats and designer togs, the breeze from Cabarita Beach rustling the pandanus trees on the lawn. Blue-and-white interiors are exuberant (nothing nautical-twee here) and new-school Aussie.

What’s the story?Cabarita Beach is one of New South Wales’ last sleepy surf towns. When sisters Siobhan and Elisha Bickle bought the dilapidated Hideaway Motel, a small surfing lodge, in 2011, they intended to turn the place into a holiday home for their families. But then they fell for the idea of creating the prettiest little seaside hotel, and drafted in architect Virginia Kerridge and Brisbane interior designer Anna Spiro to help – and by 2015 Halcyon House was just that.

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What can we expect from the bedrooms?Each of the 21 rooms is different, showcasing Spiro’s whimsical eclecticism: bold pattern on upholstered walls, mismatched artworks and antiques collected by Spiro and the Bickle sisters on their travels. Bathrooms are want-it dreamy: Mediterranean tiles, brass fixtures, a shower big enough to lay down in. The two-bedroom two-bathroom Halcyon Suite is like having your own Australian beach house.

How about the food and drink?Former Noma chef Ben Devlin heads up the restaurant, Paper Daisy. Smoky paperbark-roasted fish is served with sugarloaf, potatoes and kelp, a theatrical fresh take on a classic campfire supper, while the prawn sandwich is a wonderful interpretation of the Aussie favourite, made with brioche and avocado.

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Anything stand-out about the service?Mauro De Riso, the general manager who infuses the air with his Italian charm and sense of generosity, is one of the Bickles’ best investments.

What type of person stays here?A sunshine-loving crowd of upfront Sydneysiders and lucky travellers. Everyone comes together for evening drinks on the deck to a chilled Café del Mar-style soundtrack.

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What’s the neighbourhood scene like?The village of Cabarita hasn’t quite caught up with its luxe new addition, but in many ways that’s part of its charm, only really waking up with the arrival of summer. Byron Bay is half an hour away (borrow an Audi from the hotel), where some of the hottest names in Australian food are making their mark – ask the concierge to book you in to Fleet or Harvest.

Anything we missed?The new day spa, with its domed, hammam-style steam room, completes the picture. The bikes are cool, too, for exploring beyond the beach.

Is it worth it – why?The kind of place you dream about on a dark winter’s day. It raises the quintessentially Australian beach stay to something smarter and more sophisticated – and the food is easily among the best in the region. By John Hannan